KNOW THIS BEFORE TESLA REPORTS EARNINGS TODAY!!!

Are you ready for Alphabet Google's mother company and Tesla to report earnings today after the bell? What's going on guys? It's Ricky with Tech Boot Solutions here with a super quick market update. Wanted to make sure that you guys fully understood of what these companies were expected to report. And also I wanted to ask you, do you want me to live stream this earnings report? If you do, all I literally ask you to do is drop a thumbs up, get this video to over 500 likes. I just want to make sure enough people show up. If so, do not forget to click that subscribe button and turn on your post notifications so YouTube notifies you as soon as it is as soon as it is that I go live. Let's go ahead and jump right into it. The overall Nasdaq market started off red, but again, like clockwork, as soon as markets open, they resume back to being irrational and they begin to gap up. This is perfect because it literally does this almost every single time. It gaps up right before a major earnings report and then right before markets close, it tends to sell off in preparation or de-risking. So, we'll see if that same pattern presents itself today, but I would be very careful buying with leverage at these elevated levels. There's nothing wrong with being invested. I mean, the two companies, I don't want to say the two companies. Google is an incredible company for a reason, right? It's one of the Magnificent Seven companies. So is Tesla, but Tesla I would not call a good company, right? It's an overvalued company with incredibly high valuations. It is technically oversold based off previous patterns, but if you look at the actual valuation, again, this is just my opinion. Obviously, if you want to buy it to go long and you view it to be a good deal because of where you expect it to be, I respect your opinion, right? We're all entitled to our own opinion. For me, there's huge downside, at least 28% based off of fair value. Again, this software that I'm using is Investing Pro. If you want to use it yourself, it's the first link in the description down below. With that being said, it trades at over 360 times its earnings. It's an incredibly overvalued and overpriced company. Again, how much longer are we going to price in all of this hype and yet they deliver nothing? I'm very excited to see if once again they can actually raise the bar and not just talk about the bar being raised. This is for Tesla, right? Tesla is reporting earnings today after the bell and their market expectation is 52 cents for their EPS. That's pathetic for a mag 7 trillion-dollar company. Their revenue, $26 billion, but terrible razor-thin margins when it comes down to their actual profit. Let me show you Alphabet. Again, one of the juggernauts of Wall Street. $2.88 is their earnings per share. $117 is their revenue. And Google is notorious for not just Wall Street always expecting the best out of them, but on top of that them often delivering better than what was expected. The thing that I really like about Investing Pro is it actually shows you based off previous reports if they beat and if they missed, right? EPS, revenue. And it looks like back in 2025, around February, they missed the revenue slightly. Again, 220 million miss when they're again they were stuck at 96.47 billion. Other than that, in my opinion, Google is a mag 7 company for a reason. Like this is a money printing machine. Now, that doesn't always mean that the market reacts in a positive way when the company beats earnings cuz remember, Wall Street likes to get ahead of themselves. And if there's anything that shows signs of uncertainty and that wasn't already priced in, that is where markets tend to sell off, right? Because it wasn't priced in, the fear, the uncertainty, whatever the case might be. As you can see, based off of the nine previous earning reports, three of them reacted in a negative way. What what is that? Uh six of them reacted in a positive way. If you're a beginner, I would not trade earnings. It's more volatile. It's incredibly risky. And again, Alphabet is not necessarily a company you want to trade. It normally doesn't move very much normally. But again, anything can happen and it's just If you're a beginner, you need to look learn how to walk before you run. And trading during extended hours with limit orders just is a little bit more challenging. Obviously, you can do whatever it is that you want, but my job is here to make beginners aware of higher risk plays so they can be more cautious, right? And possibly stay away from them. As you can see, the P/E ratio is relatively fair, 26.5 times its earnings. It's a company that produces $422 billion in revenue and its net income is $160 billion. It is a company that makes money. It's It's very I feel like it's sometimes hard. You guys let me know down in the comment section. It's sometimes hard to like give these companies their flowers because there's like so many other wannabe companies that are taking the spotlight that are nowhere close to making as much money as Google or Microsoft or Amazon or Meta. But again, they're more trendy. So, I just want to remind you, it's it's okay to have your higher risk plays with maybe smaller amounts of capital, but maybe it's also not a terrible idea to be invested in good quality companies over a long period of time. Just food for thought. Obviously, again, reach out to your financial advisor. Ask them, again, what you suggest for me to possibly get some exposure in something like Google or something like it, right? Maybe Nasdaq, maybe S&P 500. However it is that you might see it, but I just I love Alphabet because time and time again it's not perfect. No company is, but it's as close to perfect as they can be. And I just love seeing companies like this. Not only that are performing well, technically speaking, right? Because if you look at the company um price performance has been great. I mean, really for the past few months it's been kind of stagnant uh just because of all this obviously the semiconductor and memory chip space, but over a long period of time it's incredibly bullish. And I love that about it, right? Obviously, it could be a little overbought and maybe, you know, some some pullback or correction potential is likely to present itself. So, I think that's why it's important to have a conversation either with yourself or with a financial advisor and ask them "Hey should I buy some Google right now? Or maybe do I wait for a little bit more downside?" There's no right or wrong answer. It's just depending on how conservative or how aggressive you want to be. Uh the other one that I quickly wanted to bring up is um ServiceNow. I mean, there's IBM also reporting earnings today after the bell, but not a lot of people talk about ServiceNow. And the reason why is they used to talk about it. They used to try to shove it down your throat. And that's when it was incredibly bullish. I hate when companies are like that because they were super trendy. They focused on the AI space. They're running all on hype. But then as soon as it breaks its pattern, no one wants to talk about it. Why not? I thought you were so fond of it. And I don't think there's anything wrong to be fond of a company that was doing well, but it's also important to acknowledge when it's overpriced. Look at that. From highs of 239, now it's trading at 96. It's down over 50%. And guess what? Even after losing over 50% of its value it's still trading at 56 P/E ratio. It's still incredibly expensive in comparison to any of the other companies. With that being said, again, according to a series of analysts fair value, there's 53% upside. The unfortunate part about this is that market's reaction quarter after quarter based off of recent earning reports has not been the best. Negative, negative, negative. It looks like market sentiment has really changed on ServiceNow. Their expectation for their EPS is 86 cents per share. Huh, pretty similar to Tesla, huh? And their expected revenue is $3.93 billion. So, what ServiceNow is actually known for is they actually have pretty healthy margins. They've been growing at an incredible rate, but the big concern is is that it's too competitive and that ServiceNow isn't going to be able to compete with some of the larger players now. So, let me see if it shows this in the This is one of my favorite parts about Investing Pro is that it can show or highlight specific areas of uncertainty. I think investors should not just be aware of bull case, but they need to be aware of the concerns. So, looks like price targets have might have been revised down. Stock has declined approximately 45% over the past 12 months. Yep. 38 downward EPS revisions. Geopolitical instability, particularly conflicts in Middle East causing deal delays and impact on Q1 2026 subscription revenue growth by 75 basis points. Okay. Cash flow margins, 20 basis points. Uh, the risk of seat compression where generative AI resolves IT tickets autonomously. Reduction Okay. So, the big thing that I've learned about ServiceNow and I'll follow up with this uh especially by the time that it actually reports earnings today is that what I've learned is that it's its competitors either are much better financed or much larger companies. So, the market share capabilities of now the competition that ServiceNow has now than versus before um it's just it's a bigger threat um and ServiceNow just seems to be maybe a smaller player. Um, so that's something that I'll follow up with, but I wanted to talk about it because it once was a great performing stock back in 2025. And then now it's just one of the worst performing stocks, consistent lower highs and lower lows. I just wanted to present it while it's currently down. Uh, so just in case it does begin to recover, then maybe we can be into entertain the idea of going long, right? IBM is also one of the other companies reporting earnings today. And based off of recent reports, right? Had a huge gap down, down to lows of what is that? $200 per share. Nearly, um, nearly 52-week lows, right? And based off previous highs, it does have some recovery potential, but we'll see if earnings actually acts as a positive catalyst or just produces another leg down. So, I'll do my part in keeping you guys up today. Again, we will be live streaming it later today, um, as long as you guys are okay with that. And all I literally ask you to do is drop a thumbs up and subscribe to the channel. So, I appreciate you guys' time. Hope that we're into thumbs up. Please consider subscribing. A lot to talk about, um, and a lot to look forward to. We just have to wait for markets to report and react. And, um, we'll keep you up to speed. Appreciate your time like always. Let's make sure that we end the year on a green note. Take care, team.